Tag: posting of entries in ledger

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Multiple choice elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

_______________ is real account in nature and also an asset and will always show debit balance.

  1. Bill Receivable

  2. Bill payable

  3. Debtor

  4. Creditor
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Bills receivable represent money owed to the business by others, functioning as an asset. Assets are real accounts and carry a debit balance.

Multiple choice elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

Bills Payable book is to keep a record of ____________.

  1. Bills Payable to Creditors

  2. Bills Received From Supplier

  3. Credit Purchases

  4. Credit Sales
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

There are various subsidiary journals maintained to record various transactions. This includes sales day book, purchase day book, bills receivable book, bills payable book etc. 

Bills payable book is a subsidiary book which is used to records all bills payable to creditors.

Multiple choice elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

Bills Receivable book is to keep record of ___________.

  1. Bills Received From Customers

  2. Bills Received From Supplier

  3. Credit Purchases

  4. Cash Sales
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

There are various subsidiary books. Bills receivable book is also a subsidiary book which is used to records all bills received from customers.

Multiple choice elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

The bank rate means ____________________________________.

  1. Rate of Interest charged by commercial banks from borrowers

  2. Rate of Interest at which commercial banks discounted bills of their borrowers

  3. Rate of interest allowed by commercial banks on their deposits

  4. Rate at which RBI purchases or re-discounts bills of exchange of commercial banks
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The bank rate is the official interest rate at which the central bank (RBI in India) provides loans or rediscounts bills of exchange to commercial banks.

Multiple choice elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

On drawing a bill of exchange the drawer debit __________.

  1. bill receivable a/c

  2. bills A/c

  3. bills payable A/c

  4. endorsee A/c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When a drawer draws a bill, they create a bill receivable, which is an asset. Increasing an asset requires a debit entry to the Bills Receivable account.

Multiple choice elements of accounts ledger and posting meaning of bill of exchange index of ledger, forms of ledger and process of posting posting of entries in ledger

____________ is designed as a summary of all the bills accept by the firm for which payment has to be made on specified dates of maturity in future.

  1. Bill receivable book

  2. Bill Payable Book

  3. Cash Book

  4. None
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Bills Payable Book is a subsidiary book used to record all bills accepted by the firm, which represent future payment obligations.